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Trip.com (9961): announced its first quarter 2026 results, with net operating revenue increasing by 17% year-on-year to RMB 16.2 billion, mainly due to the resilience of travel demand. Net profit for the quarter was RMB 2.5 billion, a slight decrease from RMB 4.3 billion in the same period last year; adjusted EBITDA was RMB 4.8 billion. While the overall performance in the first quarter met expectations, the company's outlook for the second quarter has weakened significantly. Looking ahead to the second quarter, affected by unfavorable macroeconomic factors such as high oil prices, geopolitical volatility, and adjustments to the domestic industry compliance framework, the year-on-year growth rate of net operating revenue is expected to slow significantly to 3% to 8%, and profit margins and profitability will also be under pressure.
Profits of China's large-scale industrial enterprises rose 21.1% YoY in May
Profits of China's large-scale industrial enterprises rose 21.1% year-on-year in May, with profits in the computer, communication and other electronic equipment manufacturing industry surging 103.9% in the first five months of the year. In the first five months of this year, profits in the non-ferrous metal smelting and rolling processing industry increased by 117.1% year-on-year. The electronics industry and raw material manufacturing industry are the main drivers of this round of profit growth. The former benefits from the surge in chip demand driven by global AI technology changes, while the latter is driven by demand from the new energy and AI industries, with non-ferrous metal prices such as copper and aluminum remaining high.
On Friday, Hong Kong Stock Connect saw a net outflow of HK$2.504 billion. Among the top performers, Kingboard Laminates (01888) saw the largest inflow at HK$2.307 billion, followed by Yangtze Optical Fibre and Cable (06869). Alibaba-W (09988) recorded the largest net outflow at HK$2.269 billion, followed by Tencent Holdings (00700).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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